Mortgage rates have been coming down, but there has yet to be a spike in homebuying activity—and one leading indicator has even declined.
That’s despite the weekly average mortgage rate sliding for nine consecutive weeks, hitting an 11-month low of 6.26% after reaching 6.8% at the start of the summer.
But mortgage-purchase applications edged up just 3%, and the anemic sales data are dashing hopes that cheaper borrowing costs will quickly jump start the housing market.
Those waiting for mortgage rates to fall further may have already missed their chance, as borrowing costs have started to tick higher again.
Meanwhile, job growth hasn’t been as robust as other indicators have been, casting gloom over the housing market. In addition, uncertainty about President Donald Trump’s tariffs and recession fears still linger, according to Redfin.
“A lot of buyers are hesitating because they’re worried about potentially losing their jobs, losing money in their stock portfolio, and the economy in general,” said Josh Felder, a Redfin Premier agent in San Francisco, in a statement. “Many of the buyers who are moving forward are making offers with contingencies, and are willing to walk away during the inspection period if they don’t get the concessions they want.”
